Settlement Preparation: early year-end mortgage payments

Early year-end mortgage payment could cut taxes

A little year-end attention to your mortgage could lower your upcoming IRS bill.

Unlike rent, which you pay beforehand (i.e., your Jan. 1 bill covers your stay in the rental unit for that coming month), your mortgage payments are made at the end of your occupancy period. That means your Jan. 1 mortgage statement represents interest for December, making it a tax-break-eligible bill for this year.

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